InvestorQ : Why are the NAVs of some of the debt funds of Templeton funds falling so sharply in the last few days?
Archita Jajjoo made post

Why are the NAVs of some of the debt funds of Templeton funds falling so sharply in the last few days?

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Rashi Mehra answered.
1 year ago
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Templeton funds have been one of the worst hit by the recent defaults and downgrades on Indian debt paper. In fact, the NAVs of 5 debt funds of Franklin Templeton fell by 3.4% on March 09, after the fund marked down its investments in bonds issued by ADAG group by 95%. In the case of another beleaguered company, Essel Infrastructure, Templeton fund has written down the value of the bonds by 85% post the “Default” classification by rating agencies. With a substantial exposure to the AT1 bonds of Yes Bank and there could be more such write-offs for FT Funds in the future too. Debt funds are the new risk.

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